Escrow & Title
In Hawaii, what is an 'indemnity agreement' in the context of a title insurance claim?
AA. The borrower's promise to repay the loan
BB. An agreement where one party promises to compensate another for losses arising from a specific risk or defect✓ Correct
CC. The title company's commitment to issue a policy
DD. The escrow company's authorization to disburse funds
Explanation
An indemnity agreement is a contractual promise to compensate another party for a specific loss or defect, sometimes used in lieu of resolving a title issue when the risk is small.
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